RobertB4444
Employee Tax Expert

Business & farm

Grantor trusts are not required to file a form 1041 provided the grantor reports all items of income on their personal return.  

 

So for a grantor trust you follow the same rules that you would if you had earned the income personally.  You are required to report the income on your own state return just as if you had earned it.  But whether you are required to report it in the state the income is sourced from depends on the state.  You will need to read the rules for the state the trust is located in and see whether the income that was earned was classified as earned from sources in that state.

 

@sdev928909 

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